US embassy cable - 02ANKARA8932

C O N F I D E N T I A L ANKARA 008932 
 
SIPDIS 
 
 
STATE ALSO FOR E, EUR/SE AND EB/TPP 
TREASURY FOR OASIA - MILLS AND LECHTER 
STATE PASS USTR FOR NOVELLI/BIRDSEY 
 
 
E.O. 12958: DECL: 12/11/2012 
TAGS: ETRD, ECON, PREL, TU, IZ, Iraq 
SUBJECT: TURKS RAISE ISSUE OF FUTURE TRADE WITH IRAQ 
 
 
Classified by Charge d'Affaires Robert Deutsch.  Reason: 
1.5(b,d) 
 
 
1.  (C) Foreign Trade Under Secretary Tuncer Kayalar told us 
December 11 that, in the event of a military operation in 
Iraq, Turkey would seek USG and United Nations support for 
some kind of preferred trade status to enable it to re-start 
exports to Iraq quickly and on a large scale.  He argued that 
such a status would help make up for the trade losses Turkey 
has suffered since 1991 and would expect to suffer in the 
event of a military operation. 
 
 
2.  (C) Kayalar was not clear on exactly what Turkey would be 
looking for, but suggested the UN could provide Turkey with 
preferred status that would enable it to export humanitarian 
goods during an operation (he mentioned Article 50 status in 
this context) and a broader range of goods and services after 
an operation.  He explained that the GOT assumed some kind of 
international authority would control a post-operation Iraq 
for a lengthy period, and would be able to -- in effect -- 
direct contracts to Turkey. 
 
 
3.  (C) Kayalar noted that State Minister Ali Babacan and 
others had focused on Turkey's financial difficulties and 
needs in the event of an operation, but suggested that 
support for Turkey on the trade side would also be important. 
 We responded that any discussion at this point would be 
highly speculative, but pointed to U.S.-Turkish cooperation 
on Afghan reconstruction as an indication of how our two 
governments could facilitate successful business partnerships 
in previously off-limits countries. 
 
 
4.  (C)  Comment:  Kayalar and his boss, State Minister 
Kursad Tuzmen, are strong advocates of Turkey developing 
stronger trade relations with its neighbors, including Iraq. 
We would expect this initial pitch by Kayalar to turn into a 
steady drumbeat as the GOT presses its case for preferential 
treatment.  In fact, Turkey is well-placed on its own to take 
full economic advantage of the economic opportunities that 
would arise should Iraq return to the international 
community. 
DEUTSCH